Tax System of Estonia in 2018: What Has changed?
In 2018, Estonia’s taxation system has been subjected to a number of changes. Here are the most significant of them: A considerable leap in the registration threshold as a payer of sales tax from EUR 16,000 to EUR 40,000. Reduction of the tax benefit on regularly paid dividends from 20% to 14%. For the first time, a reduced rate can be applied for dividend payments in the next year, taking into account that in 2018, the corresponding tax was levied at a rate of 20%. The benefit does not apply to the dividends received and already taxed. It also does not apply to the loans that are taxed as a hidden profit distribution. In 2019, the dividend amount will be taxed at a reduced rate, corresponding to one third of the dividends paid in the previous year. In 2020, this benefit will be applicable to the amount of dividends corresponding to one third of the dividends paid in 2019-2020, and in 2021 - to the amount equivalent to the average value of the dividends paid for the previous three years. Introduction of new obligations for commercial organizations that issue loans to their stockholder, shareholder or member. We remind you that a commercial association pays income tax from...
